Ohh time to get back in! Get lured into trading by crypto, stay for the fx gains! Or more losses. 
1 Like
He!he!
This is a good idea but my problem would be spotting if the trend is about to reverse. Do you have any tips on how to know that the trend will continue or reverse?
1 Like
LOL! 
Nobody knows. Price will either bounce off a level of S/R or breakout of it. Maybe, divergence of price and oscillator could offer some hint of forthcoming reversal, but when price proceed to breakout, the reversal opinion is immediately called off. And after a breakout, price reversed and breakout the opposite S/R. You just got whipsawed. You can scream F *** at this point in time.
1 Like
I honestly don’t know of a reliable indicator that suggests a reversal before trend has reversed.
But maybe you don’t mean reversal anyway. Reversal means an uptrend becomes a downtrend. That cannot happen in 1 day so price will almost always show an indication before the new trend. But trends can weaken in 1 day and when it weakens enough I exit anyway. This is usually a long way from my stop-loss so my maximum risk is not usually reached.
Of course, a good place to enter a trend is right after it has weakened, when it starts to resume. So sometimes I find the trend weakens, I close my position and the very next day I can get back into the same trend.
I am currently applying Bob Volman’s price action strategy to the D1 charts, and very much enjoying it. I made an effort to start a discussion about it here, but there did not seem to be much enthusiasm for the topic. This not terribly surprising, as Volman is writing for traders that are already profitable with other systems, and they (by definition) already have systems that they like. So the audience for a thread likely that is limited.
Nor would I direct new traders to Volman, or price action trading in general. Mark Douglas talks about the three stages of a trader’s development: the mechanical stage, the subjective stage, and the intuitive stage. Because price action trading is inherently subjective, it fits easily into the second and third stages, but rather uncomfortably into the first stage. A simple indicator based strategy does a much better job of getting a new trader through the mechanical stage, and you can find my thread about the strategy I used here.
While I am happy to pass on this information, I will point out what every profitable trader points out: your results, even with an identical system, will not be the same as my results. This is what makes passing on winning strategies so difficult, and why successful traders generally have very little interest in other people’s strategies. I think the best explanation as for why this is was by Al Brooks, when he talks about the Trader’s Equation.
2 Likes
Gooday! Thanks. really suprised to hear that a swing trader coud trade everyday and make profits everyday. i thought one would have to wait forever like me to find that setup in time frames like H4 and D1 that takes forever for a single candle to form.tempting me to check out the disastrous M15 again.
As I just mentioned in the reply to your message…I dont trade everyday. It is the trades that take 24 Hours.
Duane
DRFXTRADING
1 Like
I struggled as a trader for a long time, but the things that I had to do and overcome to be a profitable trader included the following:
- Define and stick to a Trade Plan
- Adhere to risk management AT ALL times
- Get in control of my emotions
- Have a balanced perspective
- Accept probability playing out in my favour over the long run
- Be remote from the outcome of any particular trade
- Have realistic expectations
- Be disciplined and dont break rules 1-7 above!
Hope that helps!
1 Like
Please whats the name of the book?
Yea! For me i think you just hit the nail on the head.
1 Like
its a very good list of course , but making a list is too easy but in practically really difficult to implement.
Its only difficult if you have the wrong mindset and you have limiting beliefs.
It actually can be very easy!
what kind of help do you need?
- Follow the bigger Trend (Weekly, Monthly)
- Reduce your lot Size
- Give you trades some space to breath (No tight Stop Losses)
- Bank your Profits early (But not too early)
- Let the market give what its gonna give (no to checking your trades every 2 minutes like you are making scrambled eggs)
It’s really interesting that you pointed out exit rules for profitable positions. Do you have any suggestions on when to take profits when the TP seems to be unreachable?
I never set a TP.
The rules I am using right now are - (these rules are for uptrends: reverse for downtrends) -
- price hits the stop-loss
- price closes the day below the 3EMA
- price makes a fifth consecutive bar with higher highs and higher lows
- price makes a third consecutive higher close
- the 20 or 50EMA slope turns downwards
- the 20EMA drops below the 50EMA
- the total unrealised gain across all open positions makes 10% of the account capital - then I close all open positions and take a day off
If the market conditions were more favourable towards trends I would be running the winners longer and hopefully pyramiding them also.
No.2, the 3EMA rule, is problematic if price is ranging so that s the one I most often have to ignore.
I have read the whole pypsology course no matter how you put it and there are lof of things which may reallly stop you. So please take this all in account please. I do hope we will battle all issues together, cause that way we are much much stronger.